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Turkey Proposes New Crypto Legislation to Enhance Safety, Compliance

The proposal, presented to the parliament, seeks to establish stringent regulations and oversight for crypto service providers.

Turkey has introduced a legislative proposal aimed at reducing the risks associated with crypto asset transactions within the country.
Credit: Foretoken Media 2024

ISTANBUL – Turkey has introduced a legislative proposal aimed at reducing the risks associated with crypto asset transactions within the country. The bill, introduced by ruling party chairman Abdullah Güler, includes various regulations regarding crypto assets and will be implemented by the Capital Markets Board (CMB). The proposal establishes important rules regarding crypto service providers and increases the CMB’s supervision over them.

The bill aims to introduce a licensing scheme for crypto firms, which will be managed by the CMB, thereby bringing these firms under the regulator's scope. To protect customers, the scope of inspections for crypto providers will also be expanded. This move is seen as a critical step in ensuring the safety and security of transactions within the crypto ecosystem.

Regulatory Oversight and Crypto Intermediaries

Although the bill does not include provisions regarding taxation, it mandates that the CMB and TÜBİTAK will obtain certain rates of income from crypto service providers. Specifically, CMB and TÜBİTAK will receive 1% of revenues from these providers.

TÜBİTAK, the Scientific and Technological Research Institution of Turkey, is a national agency focused on developing policies in science, technology, and innovation, as well as supporting research and development.

The proposed law will also prohibit crypto intermediaries without a local origin. This measure is expected to increase Turkey compliance with international standards regarding crypto assets, eliminate criticism from the Financial Action Task Force (FATF), and enhance the safety of the country’s crypto ecosystem.

Support for Turkey's Crypto Legislation

In March, Turkey's economy minister, Mehmet Şimşek, highlighted the government’s efforts to exit the FATF gray list. He announced that a delegation would visit Turkey for inspection in April-May, emphasizing the importance of removing the gray list designation.

The ruling AK Party Deputy Chairman of Information and Communication Technologies, Ömer İleri, emphasized the significance of legal regulations in the field of crypto assets. He stated,

"We find it very important to carry out a legal study in the field of crypto assets. This legal regulation is primarily a study that will regulate the platforms, but beyond that, it will be a regulation that will protect our citizens and investors."

By implementing a licensing scheme, expanding regulatory oversight, and restricting non-local intermediaries, the country aims to align with international standards and protect its citizens and investors.


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